Primoris (PRIM) Acquires Florida Gas Contractors For $33M

Primoris Services Corporation (NASDAQ:PRIM) recently acquired the assets of Florida Gas Contractors (FGC), for approximately $33 million. The buyout will broaden the geographic reach of Primoris’ Utilities and Distribution segment.

Based in Dade City, FL, FGC is a utility contractor specializing in underground natural gas infrastructure. The company generated revenue of $29.5 million in 2016, mainly derived from Master Service Agreements (MSA) with its utility customers.

The acquisition will expand Primoris’ presence in the Florida and Southeast markets. The company anticipates long-term growth opportunities in the utility market.

Primoris Services Corporation Price

Primoris Services Corporation Price | Primoris Services Corporation Quote

Notably, FGC will operate as Primoris Distribution Services, part of Primoris’ Utilities and Distribution segment. Its installation, maintenance and upgrade services will assist the company to provide better services to customers.

Primoris foresees plenty of solid prospects with the current business units and also expects acquisition opportunities, especially in the utility and pipeline markets. In addition, benefits from the company’s geography and market diversity, as well as anticipated boom in capital pipeline construction, will bolster revenues.

Share Price Performance

Year to date, Primoris has outperformed the Zacks categorized Building Products and Heavy Construction sub-industry. The company’s shares gained around 2.7%, while the industry incurred 9.6% loss during this period.

Primoris currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the construction sector include Masco Corporation (NYSE:MAS) , Boise Cascade Company (NYSE:BCC) and TopBuild Corp. (NYSE:BLD) . All three stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Masco has an average positive earnings surprise of 3.53% for the trailing four quarters. Boise Cascade generated an impressive average positive earnings surprise of 114.74% over the last four quarters, while TopBuild pulled off an average positive earnings surprise of 5.98%.

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